2009 Iowa Code
Title 13 - Commerce
Subtitle 3 - Money and Credit
CHAPTER 537 - CONSUMER CREDIT CODE
537.3619 - CURE OF DEFAULT.

        537.3619  CURE OF DEFAULT.
         1.  In a consumer rental purchase agreement, after a lessee has
      been in default for three business days and has not voluntarily
      surrendered possession of the rented property, a lessor may give the
      lessee the notice provided in subsection 3 when the consumer has the
      right to cure a default.  A lessor gives the notice to the lessee
      under this section when the lessor delivers notice to the lessee or
      mails the notice to the last known address of the lessee.
         2.  For the purpose of this section, there is no right to cure and
      no limitation on the lessor's rights with respect to a default that
      occurs within twelve months after an earlier default as to which a
      lessor has given a proper notice of the lessee's right to cure.
         3.  The notice of right to cure must be in writing and
      conspicuously state all of the following:
         a.  The name, address, and telephone number of the lessor to
      whom payment is to be made.
         b.  A brief identification of the transaction.
         c.  The lessee's right to cure the default.
         d.  The amount of payment and date by which payment must be
      made to cure the default.  A notice in substantially the following
      form complies with this subsection:
        THE NAME, ADDRESS, & TELEPHONE NUMBER OF THE LESSOR ACCOUNT NUMBER,
                   IF ANY BRIEF IDENTIFICATION OF TRANSACTION
      (          ) is the last date for payment, (      ) is the amount now
      due.  You have failed to renew your rental purchase agreement(s).  If
      you pay the amount now due (above) by the last date for payment
      (above), you may continue with the agreement as though you had
      renewed on time.  If you do not pay by that date, we may exercise our
      rights under the law.  If you are late again during the next twelve
      months of your agreement, in either returning the property or
      renewing your agreement, we may exercise our rights without sending
      you another notice like this one.  If you have questions, you may
      write or telephone the lessor promptly.


         4.  With respect to a consumer rental purchase agreement, except
      as provided in subsection 5, after a default consisting of the
      lessee's failure to renew and failure to return the property, a
      lessor, because of that default, may not instigate court action to
      recover the rented property until five business days after the notice
      of the lessee's right to cure is given.  In the case of an agreement
      with weekly or biweekly renewal dates, such action shall not be taken
      until three business days after the notice of the lessee's right to
      cure is given.
         5.  With respect to defaults on the same consumer rental purchase
      agreement and subject to subsection 4, after a lessor has once given
      a proper notice of the lessee's right to cure, this section does not
      give the consumer a right to cure or impose any additional
      limitations beyond those otherwise imposed by this part on the
      lessor's right to proceed against the lessee or the lessor's right to
      recover the property.
         6.  Until expiration of the minimum applicable periods contained
      in subsection 4 after notice is given, the lessee may cure all
      defaults consisting of failure to renew and failure to return the
      property by tendering the amount of all unpaid sums due at the time
      of the tender plus any unpaid delinquency charges or other charges
      authorized by section 537.3616.
         7.  This section and the provisions on limitations of agreements
      do not prohibit a lessee from voluntarily surrendering possession of
      the rented property, and the lessor from enforcing any past due
      obligation which the lessee may have at any time after default.
      However, in an enforcement proceeding, the lessor shall affirmatively
      plead and prove either that the notice to cure is not required or
      that the lessor has given the required notice, but the failure to so
      plead does not invalidate any action taken by the lessor that is
      lawful and if the lessor has rightfully repossessed any property the
      repossession is not conversion.
         8.  A repossession of rented property in violation of this section
      is void.  

         87 Acts, ch 80, §19
         Referred to in § 537.3610